Tax Rates Tables REVISED VERSION. September 2017

Transcription

1 Tax Rates Tables REVISED VERSION September 2017

2 Individual income tax rates Residents Taxable income Marginal rate Tax on this income $0 $18,200 Nil Nil $18,201 $37,000 19% 19c for each $1 over $18,200 $37,001 $87, % $87,001 $180,000 37% $180,001 and over 47%* $3,572 plus 32.5c for each $1 over $37,000 $19,822 plus 37c for each $1 over $87,000 $54,232 plus 47c for each $1 over $180,000 Does not include the Medicare levy of 2% of taxable income, subject to low income thresholds. Does not include the Medicare levy surcharge for persons without private health insurance. * Includes the Budget repair levy of 2% of taxable income over $180,000 from 1 July 2014 until 30 June Taxable income Marginal rate Tax on this income $0 $18,200 Nil Nil $18,201 $37,000 19% 19c for each $1 over $18,200 $37,001 $87, % $87,001 $180,000 37% $180,001 and over 45% $3,572 plus 32.5c for each $1 over $37,000 $19,822 plus 37c for each $1 over $87,000 $54,232 plus 45c for each $1 over $180,000 Does not include the Medicare levy of 2% of taxable income, subject to low income thresholds. Does not include the Medicare levy surcharge for persons without private health insurance. Individual income tax rates Non-residents Taxable income Marginal rate Tax on this income $0 $87, % 32.5c for each $1 $87,001 $180,000 37% $180,001 and over 47%* $28,275 plus 37c for each $1 over $87,000 $62,685 plus 47c for each $1 over $180,000 Non-residents are not required to pay the Medicare levy. * Includes the Budget repair levy of 2% of taxable income over $180,000 from 1 July 2014 until 30 June Taxable income Marginal rate Tax on this income $0 $87, % 32.5c for each $1 $87,001 $180,000 37% $180,001 and over 45% Non-residents are not required to pay the Medicare levy. $28,275 plus 37c for each $1 over $87,000 $62,685 plus 45c for each $1 over $180,000

3 Individual income tax rates - Working holiday makers (from 1 January 2017) Taxable income Marginal rate Tax on this income $0 $37,000 15% 15c for each $1 $37,001 $87, % $87,001 $180,000 37% $180,001 and over 47%* $5,550 plus 32.5c for each $1 over $37,000 $21,800 plus 37c for each $1 over $87,000 $56,210 plus 47c for each $1 over $180,000 * Includes the Budget repair levy of 2% of taxable income over $180,000 from 1 July 2014 until 30 June Taxable income Marginal rate Tax on this income $0 $37,000 15% 15c for each $1 $37,001 $87, % $87,001 $180,000 37% $180,001 and over 45% $5,550 plus 32.5c for each $1 over $37,000 $21,800 plus 37c for each $1 over $87,000 $56,210 plus 45c for each $1 over $180,000 Medicare levy Individuals Taxpayer Taxable income Medicare levy If eligible for the seniors and pensioners tax offset (SAPTO)* $0 $34,244 Nil $34,245 $42,805 $42, % of excess over $34,244 2% on total taxable income $0 $21,655 Nil All other individual taxpayers $21,656 $27,068 $27, % of excess over $21,655 2% on total taxable income * Even if a taxpayer meets all the eligibility conditions for the seniors and pensioners tax offset, he or she may not get it as the amount of the tax offset is based on the person s individual taxable income, not the combined taxable income if he or she had a spouse. If the taxpayer does not get it, he or she will not get a Medicare levy reduction.

4 Families NOT eligible for seniors and pensioners tax offset Family with following number of children or students No levy payable if family income does not exceed Where family income within range, 10% of the amount by which family income exceeds amount in second column Ordinary Medicare levy payable where family income equal to or exceeds 0 $36,541 $36,542 $45,676 $45,677 1 $39,897 $39,898 $49,871 $49,872 2 $43,253 $43,254 $54,066 $54,067 3 $46,609 $46,610 $58,261 $58,262 4 $49,965 $49,966 $62,456 $62,457 5 $53,321 $53,322 $66,651 $66,652 6 $56,677* $56,678* $70,846 $70,847 * Where there are more than six, add $3,356 for each extra child or student. Where there are more than six, add $4,195 for each extra child or student. Families eligible for seniors and pensioners tax offset Family with following number of children or students No levy payable if family income does not exceed Where family income within range, 10% of the amount by which family income exceeds amount in second column Ordinary Medicare levy payable where family income equal to or exceeds 0 $47,670 $47,671 $59,587 $59,588 1 $51,026 $51,027 $63,782 $63,783 2 $54,382 $54,383 $67,977 $67,978 3 $57,738 $57,739 $72,172 $72,173 4 $61,094 $61,095 $76,367 $76,368 5 $64,450 $64,451 $80,562 $80,563 6 $67,806* $67,807* $84,757 $84,758 * Where there are more than six, add $3,356 for each extra child or student. Where there are more than six, add $4,195 for each extra child or student.

5 Medicare levy surcharge and private health insurance rebates No surcharge & maximum rebate Tier 1 Tier 2 Tier 3 Singles $90,000 or less $90,001 $105,000 $105,001 $140,000 $140,001 or more Families* $180,000 or less $180,001 $210,000 $210,001 $280,000 $280,001 or more Rebate for premiums paid, 1 July 2016 to 31 March 2017 Aged under % % 8.930% 0% Aged % % % 0% Aged 70 or over % % % 0% Rebate for premiums paid, 1 April 2017 to 30 June 2017 Aged under % % 8.644% 0% Aged % % % 0% Aged 70 or over % % % 0% Medicare levy surcharge Rate 0.0% 1.0% 1.25% 1.5% Singles Families* No surcharge & maximum rebate $90,000 or less $180,000 or less Tier 1 Tier 2 Tier 3 $90,001 $105,000 $180,001 $210,000 $105,001 $140,000 $210,001 $280,000 Rebate for premiums paid, 1 July 2017 to 31 March 2018^ $140,001 or more $280,001 or more Aged under % % 8.644% 0% Aged % % % 0% Aged 70 or over % % % 0% Medicare levy surcharge Rate 0.0% 1.0% 1.25% 1.5% * The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child. The Medicare levy surcharge is a percentage of taxable income and reportable fringe benefits, and is in addition to the Medicare levy. It is paid by taxpayers who do not have the relevant private patient hospital cover for any period of the year. Income for surcharge purposes is the sum of: taxable income (including the net amount on which family trust distribution tax has been paid); exempt foreign employment income; reportable fringe benefits; total net investment losses; and reportable super contributions; less, if aged years old, any taxed element of a super lump sum, other than a death benefit, that does not exceed the low rate cap. The income thresholds used to calculate the Medicare levy surcharge and private health insurance rebate will remain at the current levels until 30 June ^ These rebate percentages will continue to be applied to the premiums paid until 31 March In March 2018, the Department of Health will announce the rebate percentages that will apply to premiums paid from 1 April 2018 to 31 March 2019.

6 Low income taxpayer s offset / Taxable income Rebate $0 $37,000 $445 $37,001 $66,666 $445 less 1.5 cents for every $1 of the amount (if any) by which the taxpayer s taxable income of the year of income exceeds $37,000. $67,667 and over Nil This offset need not be claimed in tax returns. The ATO will automatically calculate the offset for an eligible taxpayer and include it in the taxpayer s return. The offset can reduce the amount of tax payable only to zero and it does not reduce the Medicare levy. From 1 July 2011, minors (children under 18 years of age) will no longer receive the low income tax offset to reduce tax payable on their unearned income (for example, distributions from discretionary trusts, dividends, interest, rent, royalties and other income from property). Seniors and pensioners tax offset (SAPTO) / Maximum offset per taxpayer Shade-out threshold (rebate income) Cut-out threshold (rebate income) Single $2,230 $32,279 $50,119 Each member of a couple Each member of an illness-separated couple $1,602 $28,974 $41,790 $2,040 $31,279 $47,599 Maximum offset reduced by 12.5 cents for each dollar of rebate income in excess of shade-out threshold Entity Rates for other taxpayers Rate Company 30% Small business^ 27.5% Corporate unit trust and public trading trust^ 30% Complying superannuation fund (other than non-arm s length income) 15% + Complying superannuation fund (non-arm s length income) 47%* Non-complying superannuation fund 47%* Trustee (under s 99A) (excluding Medicare levy) 47%* Entity Rate Company 30% Small business^ 27.5% Corporate unit trust and public trading trust^ 30% Complying superannuation fund (other than non-arm s length income) 15% + Complying superannuation fund (non-arm s length income) 45% Non-complying superannuation fund 45% Trustee (under s 99A) (excluding Medicare levy) 45%

7 ^ The small business tax rate applies to companies, corporate unit trusts and public trading trusts with an aggregated annual turnover of less than $10m in and $25m in Companies with an aggregated annual turnover of $10m or above (in ) or $25m or above (in ) will continue to be subject to the current 30% tax rate on all their taxable income. The maximum franking credit that can be allocated to a frankable distribution paid by a small business is 27.5% from the income year. The current maximum franking credit rate for a distribution will remain unchanged at 30% for all other companies. + The Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Act 2013 and the Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Act 2013 together impose a 15% tax on individuals with combined income and concessionally taxed contributions exceeding $300,000 in an income year. The tax is 15% on those contributions exceeding the $300,000 threshold. From 1 July 2017, the income threshold is lowered to $250,000. An individual with income and concessional super contributions exceeding the $250,000 threshold will have an additional 15% tax imposed on the amount over the threshold up to the total amount of concessional contributions not exceeding his or her concessional contributions cap. * From 1 July 2014 to 30 June 2017, rates aligned with the top marginal rate are increased by the 2% Budget repair levy. Other rates Division 7A benchmark interest rate Year of income ended 30 June % Reference: TD 2016/11 Year of income ended 30 June % Reference: TD 2017/17 If the interest rate on a loan made by a private company to one or more of its shareholders (or their associates) for each year after the year in which the loan was made is equal to or greater than the benchmark interest rate for each year, and other conditions are satisfied, Div 7A of the Income Tax Assesment Ad 1936 (Cth) will not treat the loan as a dividend in the income year in which the loan is made. Cents per business kilometre rates Year Cents per kilometre cents cents A taxpayer can use this method to claim up to a maximum of 5,000 business kilometres per car even if the taxpayer has travelled more than 5,000 business kilometres. Car limit Year of income ended 30 June 2017 $57,581 Reference: TD 2016/8 Year of income ended 30 June 2018 $57,581 Reference: TD 2017/18 Luxury car threshold and fuel-efficient car limit Year Luxury car threshold Fuelefficient car limit Year of income ended 30 June 2017 $64,132 $75,526 Year of income ended 30 June 2018 $65,094 $75,526 Reference LCTD 2016/1 LCTD 2017/1

8 Consumer price index numbers Year March qtr June qtr September qtr December qtr Cost base indexation is frozen as at 30 September Note that the Australian Bureau of Statistics changed the index reference base in September As a result, all CPI rates have been reset and the previous rates no longer apply.

9 FBT FBT rate and gross up rates The FBT rate for the year commencing 1 April 2015 is 49%. The FBT rate for the year commencing 1 April 2016 is 49%. The FBT rate for the year commencing 1 April 2017 is 47%. For the year commencing 1 April 2015 The gross up rate for Type 1 benefits (employer entitled to input tax credit) is The gross up rate for Type 2 benefits (other) is For the year commencing 1 April 2016 The gross up rate for Type 1 benefits (employer entitled to input tax credit) is The gross up rate for Type 2 benefits (other) is For the year commencing 1 April 2017 onwards The gross up rate for Type 1 benefits (employer entitled to input tax credit) is The gross up rate for Type 2 benefits (other) is Statutory fraction The statutory fraction for the operating cost method of valuing car fringe benefits in respect of a car made available or for which there was a pre-existing commitment before 7.30pm (AEST) on 10 May 2011: Annualised number of kilometres Statutory fraction <15, ,000 24, ,000 40, >40, For cars made available after 7.30pm (AEST) on 10 May 2011, the rates for the: FBT year are: 0.20 (up to but not exceeding 25,000kms), 0.17 (25,001 40,000kms) and 0.13 (over 40,000kms) FBT year are: 0.20 (up to but not exceeding 40,000kms), 0.17 (over 40,000kms). A flat statutory rate of 0.20 (20%) applies, regardless of the distance travelled, to all car fringe benefits provided from 1 April 2014, except where there is a pre-existing commitment in place before 7.30pm AEST on 10 May 2011 to provide a car. Key FBT data Year commencing 1 April 2016 Year commencing 1 April 2017 Car parking threshold $8.48 (TD 2016/7) $8.66 (TD 2017/14) Living-away-from-home-allowances: Reasonable food components (a) General reasonable food c ponents within Australia: 1 adult (ie persons aged 12 or older) 2 adults 3 adults 1 adult and 1 child 2 adults and 1 child 2 adults and 2 children 2 adults and 3 children 3 adults and 1 child 3 adults and 2 children 4 adults (b) Larger family groupings: $242 per week $363 per week $484 per week $303 per week $424 per week $485 per week $546 per week $545 per week $606 per week $605 per week A food component based on the figures in (a), plus $121 for each additional adult and $61 for each additional child (TD 2016/4) $247 per week $371 per week $495 per week $309 per week $433 per week $495 per week $557 per week $557 per week $619 per week $619 per week A food component based on the figures in (a), plus $124 for each additional adult and $62 for each additional child (TD 2017/5)

10 Key FBT data (cont) Rates to be applied on a cents-perkilometre basis when calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car: Engine capacity cc Over 2500cc Motorcycles Non-remote area housing indexation factors: New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Year commencing 1 April cents 63 cents 16 cents (TD 2016/3) (TD 2016/1) Year commencing 1 April cents 63 cents 16 cents (TD 2017/4) (TD 2017/6) Benchmark interest rate 5.65% (TD 2016/5) 5.25% (TD 2017/3) Minor benefits $300 value $300 value In-house benefits Record-keeping exemption threshold Key superannuation data First $1,000 taxable value per employee per year is exempt $8,286 (TD 2016/2) Superannuation and ETPs Concessional contributions cap for individuals aged 59 years or over on 30 June 2013 Concessional contributions cap for individuals not aged 59 years or over on 30 June 2013, but aged 49 years or over on 30 June 2015 First $1,000 taxable value per employee per year is exempt $8,393 (TD 2017/2) $35,000 $25,000 $35,000 $25,000 Concessional contributions cap for other individuals $30,000 $25,000 Non-concessional contributions cap $180,000 $100,000 CGT cap amount $1,415,000 $1,445,000 Low rate cap amount/etp cap amount $195,000 $200,000 Untaxed plan cap amount $1,415,000 $1,445,000 ETP life benefit cap amount $195,000 $200,000 ETP life benefit whole of income cap amount $180,000 $180,000 ETP death benefit cap amount $195,000 $200,000 Based tax-free area of a bona fide redundancy $9,936 $10,155 For each completed year of service $4,969 $5,078 Superannuation guarantee percentage 9.5% 9.5% Maximum contribution base (per quarter) $51,620 $52,760 Co-contribution lower income threshold $36,021 $36,813 Co-contribution upper income threshold $51,021 $51,813

11 Superannuation lump sum tax table For payments made from 1 July 2017 to Australian residents* Income component derived in the income year Member benefit taxed element Member benefit untaxed element Death benefit lump sum benefit paid to non-dependants taxed element Death benefit lump sum benefit paid to non-dependants untaxed element Death benefit lump sum benefit paid to dependants taxed and untaxed elements Roll-over superannuation benefits taxable component taxed element Roll-over superannuation benefits taxable component untaxed element Age at the date payment is received Under preservation age At or above preservation age and under 60 Aged 60 and above Under preservation age At or above preservation age and under 60 Aged 60 and above Amount subject to tax/payg withholding PAYG withholding rate (includes Medicare levy) Whole amount 22% Amount up to the low rate cap amount Amount above the low rate cap amount Whole amount Amount up to untaxed plan cap amount Amount above untaxed plan cap amount Amount up to the low rate cap amount Amount above the low rate cap amount and up to the untaxed plan cap amount Amount above the untaxed plan cap amount Amount up to the untaxed plan cap amount Amount above the untaxed plan cap amount Nil 17% Nil 32% 47% 17% 32% 47% 17% 47% Any Whole amount 17% Any Whole amount 32% Any None Nil Any Any Nil - payment is not assessable income and is not exempt income Amount up to the untaxed plan cap amount is not assessable income and is not exempt income Amount above the untaxed plan cap amount N/A N/A 47%

12 Superannuation lump sum tax table (cont) Income component derived in the income year Superannuation lump sum benefits less than $200 Super lump sum benefit (terminally ill recipient) Age at the date payment is received Amount subject to tax/payg withholding PAYG withholding rate (includes Medicare levy) Any None Nil Any None Nil * If a foreign resident s superannuation lump sum is assessable in Australia, tax is required to be withheld. The PAYG withholding rates set out above should be adjusted to exclude the Medicare levy of 2%. Preservation age Date of birth Preservation age Before 1 July July 1960 to 30 June July 1961 to 30 June July 1962 to 30 June July 1963 to 30 June From 1 July Minimum annual payments for superannuation income streams Age For years 1 July 2008 to 30 June 2011* For years 1 July 2011 to 30 June 2013* Minimum % withdrawal (in all other cases) Under 65 2% 3% 4% % 3.75% 5% % 4.50% 6% % 5.25% 7% % 6.75% 9% % 8.25% 11% 95 or more 7% 10.50% 14% * The reduction in the minimum payment amounts applies to account-based annuities and pensions, allocated annuities and pensions, and market-linked annuities and pensions. Income stream tax table Element taxed in the fund Age of recipient Income stream Age 60 and over At or above preservation age and under 60 Under preservation age Not assessable, not exempt income Taxed at marginal tax rates* Tax offset of 15% is available Taxed at marginal tax rates, with no tax offset* Tax offset of 15% is available if a disability super benefit * The tax-free component is not included. This component is not assessable and not exempt income in all cases. Medicare levy (2%) will apply if amounts are assessable. There is no entitlement to a tax offset for the taxed element of any super income stream received before preservation age unless the super income stream is either a disability super benefit or a death benefit income stream.

13 Income stream tax table Element untaxed in the fund Age of recipient Income stream Age 60 and over At or above preservation age and under 60 Under preservation age Taxed at marginal rates, with 10% tax offset* Taxed at marginal tax rates, with no tax offset* Taxed at marginal tax rates, with no tax offset* * The tax-free component is not included. This component is not assessable and not exempt income in all cases. Medicare levy (2%) will apply if amounts are assessable. There is no entitlement to a tax offset for the untaxed element of any super income stream received before the age of 60 unless the super income stream is a death benefit income stream and the deceased died after he or she reached the age of 60. ETP tax table For payments made from 1 July 2017 Income component derived in the income year Life benefit ETP Payment is because of: early retirement scheme genuine redundancy invalidity compensation for personal injury, unfair dismissal, harassment or discrimination. Life benefit ETP Payment is: a golden handshake non-genuine redundancy payment severance pay a gratuity in lieu of notice for unused sick leave for unused rostered days off. Death benefit ETP paid to nondependants taxable component Death benefit ETP paid to dependants Death benefit ETP paid to a trustee of a deceased estate Age at the end of the income year that the payment is received Under preservation age Preservation age or over All ages Under preservation age Preservation age or over All ages All ages All ages Component subject to tax/payg withholding Maximum rate of tax/payg withholding rate (including Medicare levy) Up to the ETP cap amount # 32% Up to the ETP cap amount # 17% Amount above the ETP cap amount # 47% Up to the lesser of: ETP cap and whole-of-income cap^ Up to the lesser of: ETP cap and whole-of-income cap^ Above the lesser of: ETP cap and whole-of-income cap^ Up to the ETP cap amount Amount above the ETP cap amount Up to the ETP cap amount Amount above the ETP cap amount 32% 17% 47% 32% 47% Nil 47% Nil # The ETP cap amount for the income year is $200,000. The amount is indexed annually. ^ The whole-of-income cap amount for the income year and future years is $180,000. This amount is not indexed.

14 TAX YEAR July August September October November December Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat January February March April May June Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat